Construction Contractors in Victoria – Change is coming

The new Labour Hire Licensing Act 2018 (VIC) is about to come into force and it has significant implications for the construction industry. From 30 October 2019 any labour hire provider must have applied for or be have a labour hire licence to operate in Victoria – applications for licences open from 29th April. This legislation means that anyone who provides contract labour services must be accredited and have background checks.

This does not apply to recruitment activities, but for those who are engagement in providing contract services where an individual or individuals are paid for their work by someone other than the direct employer. A general definition follows:

This is the general definition of labour hire services (section 7 of the LHL Act).

  • in the course of providing recruitment or placement services, recruits individuals for, or placesthe individuals with a host who has to pay the individuals to perform work in and as part of the host’s business or undertaking and the provider procures or provides accommodation for the individuals for some or all of the period that they are working with the host

This is an extended definition of labour hire services relating to recruitment and placement services(section 8(1) of the LHL Act).

  • in the course of conducting contractor management services recruits the individuals as independent contractors to perform work in and as part of a host’s business or undertaking and manages the contract performance by the independent contractors

So what does this mean for the industry? If you engage contractors from a supplier, your only requirement is that you ensure that you are using a licenced provider.

Construction Advisor provides contract labour services including: Project Managers, Estimators, Project Engineers, Legal/Claims, Technical Writers, Market Research and more. We are in the process of submitting our application for accreditation under this legislation.

To read more visit the Labour Hire Authority Website Here.